The yen sat near a one-week high in forex and a steady U.S. dollar held commodity currencies in check. Worries about the growing number of virus cases tempered optimism around promising vaccine trials.
At 104.14 per dollar, the Japanese currency has regained more than half of the losses it suffered last week. That was after Pfizer (NYSE:PFE) announced it had developed a working COVID-19 vaccine.
Bitcoin (BTC=BTSP) has surged to a three-year high against the dollar. BTC is sometimes regarded as a haven asset or at least a hedge against inflation. Moreover, the risk-sensitive Australian and New Zealand dollars were a fraction softer, along with stocks.
Westpac currency analyst Imre Speizer said the slight cooling of equity sentiment had put a cap on currencies.
In the United States, surging cases have driven record hospitalizations. Fresh restrictions are being implemented on gatherings in the country. New outbreaks trouble authorities in Japan, South Korea, and Australia.
On Tuesday, Federal Reserve Chair Jerome Powell said there was a long way to go to economic recovery.
Currencies Movements
The Australian dollar dipped 0.3% on Tuesday in forex exchange. It was a shade weaker still on Wednesday at $0.7288. On the other hand, the New Zealand dollar was 0.1% softer at $0.6889. [AUD/]
The dollar (=USD) held at 92.439, a bit softer than earlier in the week. A slight bond rally has taken the shine off U.S. Treasury yields. [US/].
In the eurozone, the euro (EUR=) was steady at $1.1862. Sterling climbed higher as traders hoped for a step forward in a Brexit trade deal. [GBP/]
Britain’s chief negotiator, David Frost, told Prime Minister Boris Johnson that a Brussels trade deal is likely early next week. Reports said that a possible landing zone as soon as next Tuesday is likely.
Soft economic data in the U.S. weighed on dollar sentiment.
Since late May, the Chinese yuan has gained nearly 9% against the dollar. This is despite the central bank taking various actions to temper its strength.
British inflation figures are due later on Wednesday. Furthermore, several U.S. Fed members make speeches.
In emerging markets, the focus is on a meeting at the Bank of Thailand. However, most economists anticipate rates to be kept on hold.
Meanwhile, the Euro to Pound (EUR/GBP) exchange rate fell on, as the pairing traded around €0.895.
Sterling was up after the Bank of England’s (BoE) Governor Andrew Bailey was notably upbeat at The City UK National Conference.
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